A Republican-sponsored pension bill that passed the Michigan House adds a significant cost onto employees who work for private companies that contract with school districts while excluding those workers from ever receiving benefits.

"The House version penalizes schools that cut costs by outsourcing with an 11.9 percent penalty for doing so," said Kristi Flietstra, general counsel for the Professional Educational Services Group.

"[This] is a penalty imposed on one class of operation (3rd party) to fund an unrelated activity of another party (teacher pensions)."

Senate Bill 1040 was changed by the House to strip out the portion that would close the defined benefit plan to new employees. At the same time, the bill looks to raise more revenue from school contractors - even though they do not take part in the current system.

Rest with how they voted